After fueling months of speculation around its hardware ambitions, OpenAI appears to be moving closer to launching its first physical product. The company made waves last year by acquiring a startup founded by former Apple design chief Jony Ive, signaling that AI-native hardware is a serious strategic priority.

At an Axios-hosted panel during the World Economic Forum in Davos, OpenAI’s Chief Global Affairs Officer Chris Lehane confirmed that the company is on track to announce its first device in the second half of this year, with shipping expected in 2026.

A calmer alternative to the smartphone

OpenAI CEO Sam Altman has previously hinted that the upcoming device would be “more peaceful and calm” than today’s smartphones. Earlier reports suggested the company was aiming for a screen-free, pocketable form factor, one designed to reduce friction and visual overload while keeping AI assistance always within reach.

Recent leaks from Asian publications now point to a more concrete direction. According to these reports, OpenAI’s first hardware product may take the form of earbuds, internally codenamed “Sweet Pea.”

Local AI, not just cloud AI

What sets these rumored earbuds apart is not just their form, but their architecture. Sources claim the device could run on a custom 2-nanometer processor, enabling it to handle certain AI tasks locally, without constantly relying on cloud requests. If true, this would align with a broader industry push toward on-device AI, improving latency, privacy, and reliability.

Manufacturing partnerships are also taking shape. OpenAI is reportedly exploring production with China-based Luxshare, while also considering Taiwan’s Foxconn as a longer-term option. In its first year on the market, OpenAI is said to be targeting shipments of 40 to 50 million units, an ambitious goal for a first-generation device.

Why OpenAI wants its own hardware

With ChatGPT approaching a billion weekly users, OpenAI already has massive reach. But today, it remains dependent on third-party platforms and operating systems for distribution. Owning the hardware layer would give the company far greater control over how its AI assistant is experienced, updated, and monetized, and would open the door to features built specifically for that device.

The challenge, however, is significant. Convincing users to replace entrenched products like AirPods will require deep integration with operating systems and a clearly superior everyday experience.

A market still searching for its breakthrough

So far, the AI hardware space has struggled to produce a true breakout hit. The Humane AI Pin was ultimately sold to HP, while Rabbit has seen momentum slow after its early hype. Other experiments, like the Friend AI companion necklace, faced swift backlash over positioning and messaging.

That said, momentum is building. Meta’s Ray-Ban smart glasses continue to expand in capability and demand, and Amazon recently acquired Bee, an AI meeting recorder that could evolve into a broader companion device.

Whether OpenAI’s first product becomes the long-awaited success story for AI hardware remains to be seen. But if the company can combine thoughtful design, on-device intelligence, and a genuinely calmer user experience, 2026 could mark the beginning of a new category, not just another gadget.

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